We believe rail data may be signaling a warning for the broader economy,” the recent note from Bank of America says. “Carloads have declined more than 5 percent in each of the past 11 weeks on a year-over-year basis. While one-off volume declines occur occasionally, they are generally followed by a recovery shortly thereafter. The current period of substantial and sustained weakness, including last week’s -10.1 percent decline, has not occurred since 2009. – Bank of America brain trust
If you believe that history repeats itself then you may feel vindicated by analysing The Economist’s All Commodity Price Index for the last 130 years.
The trend is depressing and if history is to repeat itself and the world follows the last four cycles since 1887, commodity prices are very likely to remain suppressed for another 15 years or so.The cycle currently shows that the world has entered the fastest slowdown in commodity prices since 1931 on a four-year basis, and we are on track for the fastest five-year decline since then too.
You may have noticed that things are starting to get crazy.
Financial markets are imploding, violent crime rates are soaring in our major cities, and we have witnessed a truly unusual series of natural disasters in recent months. War in the Middle East continues to rage out of control, and Islamic terror continues to spread all over the globe. And many believe that 2016 is going to be a year of political shaking, civil unrest, governmental crackdowns and great economic chaos in the United States.
All it is going to take to plunge our society into full-blown panic mode is a major “trigger event” of some sort. Another 9/11, a new “Lehman Brothers” moment, a massive EMP burst from the sun or a historic seismic event are all examples of what this “trigger event” could look like.So are you ready for what is about to happen to America? In previous articles, I have urged my readers to focus on the five basics – food, water, shelter, energy and self-defense. If you focus on those five things, you will probably be in pretty good shape during any major disaster or emergency.